The US Congress has 60 days to examine a new proposal by the US Department of Transport that would allow European companies investing in US airlines more say over key commercial decisions, a US negotiator told reporters on Thursday (11 May).
The new proposal would allow European investors to hold a 49% stake in US air carriers and would offer them more control over key commercial decisions such as the choice of routes and aircraft purchasing. But the proposal would still limit foreign voting shares to a maximum of 25%.
The EU has previously made a deal on 'open skies' conditional on the US loosening up a 1940 law limiting foreign ownership to 25% (EurActiv 21 Nov. 2005).
It is still unclear whether the EU will agree to the new US proposal, even if it passes Congress. Daniel Calleja, Director at the European Commission's Transport Directorate, said he could not prejudge the decision that EU transport ministers are scheduled to take at an October 2006 Council meeting.
Calleja said the ministers will approve the deal if the new rule is clear, meaningful and legally safe. One crucial element is whether the capacity of European companies to invest in US airlines is actually increased or not.
John Byerly, senior State Department official and senior US negotiator said the objective was to reach an agreement by the end of the year which could be applied "at the start of the next summer traffic season on March 25 2007".
